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Is Bitcoin a Dead Trend? Will It Go Back Up?
You heard it at least once – “Bitcoin’s dead.” For those into Crypto, you know that’s not true.
But, it can alarm a newbie – maybe you researched a lot and finally became confident in buying some Bitcoin. Suddenly, a price drop and all the major news outlets warning you to stay back.
Well, Bitcoin may drop in value sometimes. But it isn’t dead. And more than most investments, it has an almost certain guarantee of value.
Here are 5 reasons why Bitcoin is not dead – plus a basic economic rule of why it’s guaranteed to soar in price. Experts predict a rise already in 2018!
1) It Has “Died” more than 300 Times Already – and Is Still Pretty Much Alive
Since Bitcoin launched in 2009 there have been 323 articles declaring its death – and counting. 99 Bitcoins even made an obituary list for the poor cryptocurrency.
And, if raising from the dead just once is remarkable, imagine raising up all those times. Bitcoin has definitely been through some tough days, but it always comes back like a brave soldier.
2) Powerful Hedge Funds Still Invest in Bitcoin
Hedge Funds are partnerships that only the wealthiest can join. They amass millions of dollars and aim to profit with any valuable asset.
If Bitcoin were dying, hedge funds wouldn’t keep pouring money into its exchanges. In fact, notable hedge fund manager Travis Kling believes crypto will become a “multi-trillion dollar asset”.
Investments in crypto are so big that a single hedge fund injected USD 20 billion in a new service by Coinbase.
There’s something hedge funds don’t do: investing on a dead end.
3) Like Stocks, Bitcoin Has Ups and Downs
At its origins in 2009, Bitcoin was worth only USD 0.06 – that’s just 6 cents per coin! And it stayed that low until a rise to USD 979 in 2013.
Now, skip ahead four years to June 2017: Bitcoin more than doubles to USD 2851! Then, it goes up and up – skyrockets to a smashing USD 17,5K price – and then goes down to the current USD 6,5K range after a few ripples.
Bitcoin is like any other commodity – it’s got ups and downs. And, in worse case-scenarios bubbles that pop. That doesn’t mean it’s dead though.
Check out this stock graph for gold:
Imagine you’re a trader in 1979: gold back then was worth USD 213. Now, if you kept your gold till next year (1980), it soars to USD 644! That means you’d earn a decent profit – about triple your original investment.
Now imagine a not happy scenario: you get excited with the soaring of gold in 1980 and buy stocks for USD 644. Suddenly, in three months it drops to USD 487 – you get desperate and start selling, worried you’ll lose even more. Problem is, six months later it rises back up to USD 673 – you’d earn a profit if you were optimistic!
What happens with Bitcoin and gold is what happens with any stock. They go through ups and downs – that’s what currencies and items of value are all about. The rule of the game is supply and demand, along with a dash of occasional hype or doom scare.
So, don’t cave into the bad talking. There might be big players behind it thinking of making a profit.
4) Corporations Are Investing in Blockchain
Multi-Million companies around the world are investing in blockchain technology to decentralize their operations.
Blockchain was invented in 2008 by Satoshi Nakamoto, founder of Bitcoin. It’s the solution needed to cut out intermediaries for verifying payments.
Blockchain works as a decentralized system, in which computers around the world register approved transactions onto a block. Then, it’s added to a public chain – hence the name “blockchain.”
It’s impossible to commit fraud because all computers in the network are simultaneously analyzing the list of approved payments.
Facebook, Nestlé, and Oracle are adopting Blockchain in their supply chain to improve efficiency and security. That means big companies have their eyes on the tech that powers Bitcoin – and since it’s the most popular coin, corporations have an eye on it too.
5) Bitcoin Has a Stable Number of Users and Miners
There are almost 500 thousand active Bitcoin users. That’s people who own the cryptocurrency in wallets. And the hash rate of miners is steadily increasing, which means the number of transactions is increasing too.
It’s impossible for a dead currency to have increasing transactions. That means Bitcoin is lively and set to grow soon.
Will Bitcoin Go Back Up?
Bitcoin will rise guaranteed on the long-term. It’s all in a basic rule of Economics: supply and demand.
First off, the supply of Bitcoin is limited. It’s capped at 21 million coins. That means as crypto gets mined, it becomes more scarce.
And since cryptocurrencies are a new economic model receiving growing interest from hedge funds and global corporations, demand will increase as the cap gets closer and closer.
And big demand with low supply? That means a valuable asset!
But what about short-term growth? Most experts believe Bitcoin will grow already in 2018.
Check out these expert predictions:
- John McAfee, creator of the antivirus with his moniker, believes the price of Bitcoin will increase 10x in 2018 alone;
- Julian Hosp, co-founder of TenX predicts there might be a drop in value – but also a rise to USD 60 thousand in 2018;
- Ronnie Moas, founder of Standpoint Research, forecasts Bitcoin will reach the USD 28 thousand mark in 2018.